Motricity’s Mega Money, Just Not Qualcomm’s

Last week the mobile content management company Motricity rung up at least $32 million in a series G funding that could include an additional amount of financing. They’re sure moving through the alphabet pretty quickly!

There has been some speculation about how much more money their round includes, and reports have suggested a total of $60 million with additional investors including Qualcomm. We contacted Motricity about the additional funds and investors and they emailed us this weekend saying that Qualcomm is not an investor in this round.

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“The Qualcomm relationship only comes in that they were an investor in M7 Networks and we acquired that company a year ago. So, they’ve never invested into Motricity…only a company that we acquired,” says Motricity’s Director of Corporate Communications Les Hamashima.

Les didn’t comment on the total amount of the round, but once we find out we’ll update the story.

Motricity raising $75M, aims to make buys
Triangle Business Journal – August 11, 2006
by Leo John

Most Emailed
DURHAM – Only five months after failing in a high-profile bid to buy a rival company, wireless upstart Motricity once again is circling back to investors, this time with the target of raising about $75 million – money that may be used for another acquisition attempt.

In July and August, Motricity raised about $30 million by issuing preferred stock to existing investors – moving the company about halfway to its goal, according to securities filings by the company.

Suzanne King, a partner with New Enterprise Associates, an investor in Motricity, says existing investors are funding the company and that Motricity will use the funds as working capital and to complete its acquisition of GoldPocket Wireless, which Motricity bought in July for an undisclosed sum.

Ryan Wuerch, Motricity’s CEO, indicated the fundraiser would allow the company to expand, especially through acquisitions. “We’re continuing to pursue strong acquisition targets – that effort is not stopping.”

The next buy could be one based internationally, Wuerch indicated. “We will be growing from an international perspective … it may come through strategic acquisitions.”

Wuerch says Motricity has grown from 40 employees to its current 400 workers in 18 months, and by October the company will employ “in excess of 450 domestically.”

Motricity also is beefing up the ranks of its board of directors with the addition of former SpectraSite chief executive Stephen Clark and Cisco treasurer David Holland.

Clark says the opportunity facing Motricity is huge, and he is being enlisted to help mentor Wuerch through the expansion process. “Everyone believes, me included, … say 10 years from now … the usage of data in wireless will surpass voice,” says Clark. Motricity has raised a total of $120 million from investors, including a $40 million round that was completed in April.

Despite the millions raised by the company, analysts say Motricity is undercapitalized compared to giants such as VeriSign and Amdocs, which have barged into the wireless delivery space.

Roger Entner, an analyst with research firm Ovum in Boston, says, “One hundred and twenty million dollars is not a lot of money.”